A zirconium-based alloy with a high corrosion resistance, consisting essentially of 1 to 2 wt % Sn, 0.20 to 0.35 wt % Fe, 0.03 to 0.16 wt % Ni and the balance substantially Zr. The Fe/Ni content ratio of the alloy ranges between 1.4 and 8. The structure of the alloy has fine intermetallic compound of Sn and Ni is precipitated within the zirconium crystal grain of .alpha.-phase. The alloy may further contain 0.05 to 0.15 wt % Cr. This alloy exhibits reduced hydrogen absorption rate and suffers from no nodular corrosion, so that it can suitably be used as a material of nuclear fuel cladding tubes. The nuclear fuel cladding tube made of this alloys exhibits extended service life when used in a nuclear reactor of high degree of burn-up.